Bankers and Tax Credits

Your clients may be planning for business growth and expansion, and to make it happen, they may need bank financing. Guess what?  Much, or at least some of this financing will likely be used for activities that qualify for tax credits.

For example:

  • Line of Credit: increased payroll costs from adding employees = Job Tax Credits
  • Loan for computer systems: replacing or upgrading key business software = Retraining Tax Credit
  • Loan for capital: new or expanded land, facilities and equipment = Investment Tax Credit
  • Operating lease: new software, new or expanded buildings = Retraining and Investment Tax Credits
  • Other activities including R&D, energy, and others

As you work with clients on their year-end tax planning, ask about their expansion plans for the next few years and their means of financing it.  There is a good chance that their banking needs may provide hidden tax credits that really help them.

Talk with commercial bankers about their existing and prospective business clients. Discuss how you may be able to help strengthen their competitive advantage, using tax credits to help them close more business.

Educating bankers on tax credits for their clients will help you solidify referral relationships with them, ultimately bringing more new clients your way!